A forex rebate service is similar to a cashback option, but in this case it works in a broker’s favor. These rebates give the trader a percentage of their trading account’s spread back, which is a great way to offset the cost of a spread. To receive a rebate, a trader registers with a rebate service, follows an affiliate link, and then makes trades through that broker. The broker then shares a portion of its commission with the rebate service, which then passes the rest along to the trader.
A rebate service can work to reduce the trader’s costs by encouraging him or her to trade more. This helps the broker cut costs and increase profits, so it is a win-win situation for both parties. The trader also benefits from lower trading limits. Some rebate sites include rebate calculators to help traders make an educated decision. Keep in mind, however, that these calculators are only approximate and don’t take into account floating spreads or minimum fixed spreads. Although the calculators can help you compare different rebate programs, they aren’t an exact science.
In addition to providing information about rebate programs, many rebate services also serve as ranking platforms. They will list brokers based on the best trading conditions and rebate offers. These services are based on user feedback and trader reviews. Some rebate services even have a compensation fund to protect traders in case they lose their investment. In addition, some rebate services offer free legal support and promise to help their traders in any way they can.
Forex rebates vary by broker, depending on the amount of trades and size of the positions. Traders with large positions are usually the most eligible to claim rebates. However, the danger lies in blindly following rebates and not considering broker spreads. This may lead to higher transaction costs than expected. Therefore, when choosing a forex rebate, make sure you consider the broker’s commissions and fees.
The FXCM Rebate Program is a great way to reward your trading activity. The broker will review your accounts at the end of each business day and pay out rebates to your account within 15 days. Accounts must be active, with no open disputes or defaults. If you qualify for a rebate, you will receive a percentage of your total USD notional volume.
If you’re new to trading, you can benefit from a rebate plan with your existing broker. You can also set up multiple accounts with multiple brokers to take advantage of different offers. A good rebate service will allow you to choose the broker that best suits your needs. This way, you can be sure that you will not be limited by any particular broker.